Life Paid Up @ 65 - download product info PDF

1. Paid in cash each year
2. Applied to reduce current premium, excess can be applied to another option or repay policy loans. Not available on Electronic Funds Transfer (EFT) mode
3. Added to Cash Value and paid out as extra death benefit
4. Buy Paid-up Additions The following dividend options are available for issue ages 18-55:
5. One-year term equal to Cash Value, excess added to Cash Value
6. One-year term equal to Cash Value, excess first reduces premium, then added to cash value. Not on EFT mode
7. One-year term equal to two times Face Amount, excess added to Cash Value
8. One-year term equal to Cash Value, excess to Paid-up Additions

Additional illustration-only dividend options:

• V. Calculates earliest point that premiums can be paid by dividends by applying current dividend to Cash Value
• W. Calculates earliest point that premiums can be paid by dividends by applying current dividend to Paid-up Additions

Optional Riders:

SMLPlus Term Companion Policy (18-55) (15-55 20-year) min. $100,000; $25 policy fee.

Basic Term (10-Year Level) (18-55) minimum $25,000; maximum of 20 X base; renewable by rider; convertible for five years

Mortgage Term Rider 15- & 30-year (18-50 15-year) (18-35 30-year) minimum $25,000; maximum of 20 X base; convertible to age 60

Premium Waiver (0-55) for disability prior to age 60.

Accidental Death Benefit (0-55) within 90 days of accident prior to age 70; minimum $10,000 up to a maximum of 2 X base (up to $200,000 from all insurance companies).

Guaranteed Additional Purchase (0-37) minimum of $10,000 per option; maximum is equal to base up to $25,000; (0-20) maximum up to $50,000.

Applicant Waiver (18-55) of applicant; (0-17) of insured

Family Coverage (Spouse 18-50) minimum of $5,000 up to base. (Children 0-17) level benefit to earlier of age 23 or primary insured’s 60th birthday; limited benefit during first 15 days of live; minimum of $3,000 up to $10,000.

Automatic Riders Where Approved:

Accelerated Death Benefit Rider

1. Terminal Illness Option: All ages; up to 75% of net amount of insurance. Subject to a $250,000 overall limit; OR
2. Long-Term Care/Home Care Option: Over age 65, up to 50% of net amount of insurance; or, 36 monthly payments of 2% of net amount of insurance.

Add-On Riders:

Paid-Up Additions Rider: Used to accommodate additional level annual premium. Level premium if covered by Waiver if base policy has Premium Waiver. Minimum: $5.00/month

Single Premium Endorsement: Designed to accommodate an additional single premium, such as a 1035 transfer. Minimum: $500.00

Premium Deposit Fund: Interest-bearing account used to accumulate or hold money for future premium payments, to avoid a modified endowment contract (MEC) policy.

Usage: Suited to situations under age 50 where paid-up insurance and cash value build-up is more important than death benefit per dollar of premium. Effective in the employee benefit markets. Effective as juvenile policy for cash build-up.

Advantages: Provides an actual paid-up policy at age 65. Slightly higher premium generates a larger cash value. Broad appeal when customer wants: • guaranteed level premiums to age 65 • dividend flexibility • high early cash value

20-Pay Life - download product info PDF

Minimum Face Amount: $10,000

Issue Ages: 0-80 Non-tobacco: 16-80

Coverage: to age 100

Dividend Options: The following are available for all issue ages:

1. Paid in cash each year
2. Applied to reduce current premium, excess can be applied to another option or repay policy loans. Not available on Electronic Funds Transfer (EFT) mode
3. Added to Cash Value and paid out as extra death benefit
4. Buy Paid-up Additions

The following dividend options are available for issue ages 18-65:

1. One-year term equal to Cash Value, excess added to Cash Value
2. One-year term equal to Cash Value, excess first reduces premium, then added to cash value. Not on EFT mode
3. One-year term equal to two times Face Amount, excess added to Cash Value
4. One-year term equal to Cash Value, excess to Paid-up Additions

Additional illustration-only dividend options:

• V. Calculates earliest point that premiums can be paid by dividends by applying current dividend to Cash Value
• W. Calculates earliest point that premiums can be paid by dividends by applying current dividend to Paid-up Additions

Optional Riders:

SMLPlus Term Companion Policy (18-70) (18-55 20-year) min. $100,000; $25 policy fee.

Basic Term (10-Year Level) (18-70) minimum $25,000; maximum of 20 X base; renewable by rider; convertible for five years

Mortgage Term Rider 15-year (18-65) minimum $25,000; maximum of 20 X base; convertible to age 60

Premium Waiver (0-55) for disability prior to age 60.

Accidental Death Benefit (0-65) within 90 days of accident prior to age 70; minimum $10,000 up to a maximum of 2 X base (up to $200,000 from all insurance companies).

Guaranteed Additional Purchase (0-37) minimum of $10,000 per option; maximum is equal to base up to $25,000; (0-20) maximum up to $50,000.

Applicant Waiver (18-55) of applicant; (0-17) of insured

Family Coverage (Spouse 18-50) minimum of $5,000 up to base. (Children 0-17) level benefit to earlier of age 23 or primary insured’s 60th birthday; limited benefit during first 15 days of live; minimum of $3,000 up to $10,000.

Automatic Riders Where Approved:

Accelerated Death Benefit Rider

1. Terminal Illness Option: All ages; up to 75% of net amount of insurance. Subject to a $250,000 overall limit; OR
2. Long-Term Care/Home Care Option: Over age 65, up to 50% of net amount of insurance; or, 36 monthly payments of 2% of net amount of insurance.

Add-On Riders:

Paid-Up Additions Rider: Used to accommodate additional level annual premium. Level premium is covered by Waiver if base policy has Premium Waiver. Minimum: $5.00/month

Single Premium Endorsement: Designed to accommodate an additional single premium, such as a 1035 transfer. Minimum: $500.00

Premium Deposit Fund: Interest-bearing account used to accumulate or hold money for future premium payments, to avoid MEC policy.

Usage: Suited to situations where paid-up insurance and cash values are more important than death benefit, and the individual does not want to pay premiums for more than 20 years. Consumers over age 50 who want limited-pay policy and want to avoid a modified endowment.

Advantages: Provides an actual paid-up policy in 20 years. Dividend stream from policy can provide tax-favored cash flow until cost basis is recovered. Broad appeal when customer wants: • dividend flexibility • high early cash value.

SINGLE PREMIUM WHOLE LIFE - download product info PDF

Minimum Face Amount: $1,000

Issue Ages: 0-80 Non-tobacco: 16-80

Policy Fee: $75 (all applications submitted as non-medical)

Coverage: To age 100

Dividend Options:

The following are available for all issue ages:

1. Paid in cash each year
2. Added to Cash Value and paid out as extra death benefit
   
3. Buy Paid-up Additions

The following dividend options are available for issue ages 18-65:

1. One-year term equal to Cash Value, excess added to Cash Value
   
2. One-year term equal to two times Face Amount, excess added to Cash Value
   
3. One-year term equal to Cash Value, excess to Paid-up Additions

Optional Rider

SMLPlus Term Companion Policy (18-70) (18-55 20-year) minimum: $100,000; $25 policy fee

Automatic Rider Where Approved

Accelerated Death Benefit Rider

1. Terminal Illness Option: Up to 75% of net amount of insurance. Subject to a $250,000 overall limit; OR
2. Long-Term Care/Home Care Option: Over age 65, up to 50% of net amount of insurance; or, 36 monthly payments of 2% of net amount of insurance

Usage: For older individuals buying a guaranteed death benefit with a single payment. Early retiree market where buyer wants to leave an estate but doesn't want to budget premiums into current lifestyle.

Advantages: Creates a modified endowment contract but if held until death there is no adverse tax impact. Alternative to taxable fixed investments. True single-premium purchase with guaranteed contract maturity. Lowest cost permanent life insurance per thousand. Can purchase additional coverage within the first six months, if underwritten at initial application.

JOINT FIRST-TO-DIE UNIVERSAL LIFE - download product info PDF

Minimum Face: $25,000 (Coverage for 2 to 10 lives)

Coverage: To age 100 of the oldest insured Issue Ages: 16-85 (actual issue age for each insured)

Premium Loads: Current: 4% Guaranteed: 4%

Interest Credits: Current: Declared Guaranteed: 4%

Non-guaranteed bonus interest rate begins in policy year 11. From the 11th to the 20th policy years, an increasing interest rate is used starting with .075% in year 11 and grading to .75% in years 20 and later.

Monthly Fee: Current: $0.10/$1,000 up to $5.00 Guaranteed: $0.10/$1,000 up to $5.00

Premiums:

The Guideline Premium Test is used which limits the amount of premium that can be placed into a policy for a given death benefit.

The minimum premium is the five-year, no-lapse premium that is designed to cover the mortality and expense charges for the first five years and provide accumulation value equal to the surrender charge at that time.

The minimum monthly premium is $10.00. Can add new insured(s) to in-force policy with proof of insurability (up to 10 lives).

Optional Riders:

SMLPlus Term Companion Policy (18-70) (18-55 20-year) Minimum $100,000; $25 policy fee. (individual only)

Accidental Death Benefit (16-65) Within 90 days of accident prior to age 70; minimum $10,000 up to a maximum of 2 X base (up to $200,000 from all companies).

Disability Waiver (0-55) For disability prior to age 60; two types:

• Waive monthly deductions
• Apply monthly payments/waive monthly deductions.

Children's Coverage (18-50) level benefit to earlier of age 23 or primary insured's 60th birthday; limited benefit during first 15 days of life; minimum of $3,000 up to $10,000.

Common Death: At all ages, if more than one of the insureds die within 24 hours, we will pay the face amount on each person.

Survivor Rights: Surviving insured(s), age 75 or under, coverage continues for 60 days. If more than one survivor, they have guaranteed right to purchase a new first-to-die policy at attained age. If there is a single survivor, he/she has guaranteed right to purchase any permanent plan at attained age. Any survivors age 75 or over must prove insurability to purchase a new policy.

Market: Premier product for funding multiple-life buy-sell agreements. Also used in family situations.

Advantage: Up to 10 individuals (business owners, family members, etc.) can be covered by one policy. Joint premium is considerably less than total premium for individual policies.

Section 79 GEAR - download product info PDF

Flexibility:

Section 79 GEAR offers flexibility of funding and design options necessary in an ever-changing business environment. A business that adopts and implements a Section 79 GEAR plan has several areas of flexible elements:

• Covered employees have the right to name and/or change their own beneficiary at any time.

• Annual, bi-annual, quarterly or monthly payments are permitted.

• Employers have the option to revise the level of benefit provided if their coverage needs or financial conditions change in subsequent years.

• A helpful and knowledgeable administrative staff is available to assist employer and employees with any needs during participation.

Employer Advantages:

These results show how effectively an employer can provide a meaningful employee benefit in a nondiscriminatory manner that remains owner-friendly:

• Constantly Green should recognize a tax deduction for the entire cost of $74,240.*

• All covered employees can convert their group term coverage to individual permanent policies without evidence of insurability and with premiums based on their date of hire.

Employee Advantages:

Looking at what happens upon conversion for an individual employee provides more insight into the power of Section 79 GEAR conversions:

• Without any evidence of insurability, Jim is eligible for an individually owned permanent life insurance policy with a $140,000 death benefit.

• Without the entry-age conversion option, his annual premium would be $6,228.

• Using Jim's date of hire to calculate the annual premium requires him to pay only $1,167.

THAT’S A SAVINGS OF OVER 81 PERCENT!

• After conversion, Jim owns the permanent life insurance policy and all of its many benefits.

What can Section 79 GEAR do for my business?

For the successful business, Section 79 GEAR can provide innovative solutions to several complex problems:

• How can my business successfully fund life insurance utilizing tax-deductible*dollars?

• How can my business ensure convertibility to affordable post-retirement life insurance protection?

• How can my business provide significant levels of life insurance for estate and business solvency planning?

Follow these links for more information:

1. GEAR 79 General Brochure

2. GEAR 79 Illustration and Description

3. GEAR 79 Detailed CPA FAQ's

For Consumer Applications:

FOLLOW THESE STEPS TO GET PAID*

 CA, CT, IN, KY, MI, MN, MO, ND, OR, VA, & WI

All Other States